The Setup: A two-leg trade: HUL from Monday to Wednesday, then the entire proceeds into Britannia from Wednesday to Friday. Using the convention from MCQ 16 - buy at the Buy price, sell at the Sell price, and carry the residual cash forward. That last point is not bookkeeping pedantry here; it is what separates two of the four options.
Step 1: Leg one - HUL, Monday to Wednesday. Monday Buy price is 1,933:
Shares=⌊193336,00,000⌋=1862,Residual=36,00,000−1862×1933=754
Sell on Wednesday at HUL's Sell price of 1,979:
1862×1979=36,84,898⟹Total cash=36,84,898+754=36,85,652
Step 2: Leg two - Britannia, Wednesday to Friday. Wednesday Buy price is 3,115:
⌊311536,85,652⌋=1183since3115×1183=36,85,045≤36,85,652
This is the hinge of the whole question. Had we thrown away the Rs 754 left over from the HUL leg, the available cash would be 36,84,898 - and 36,85,045>36,84,898, so only 1,182 shares would be affordable. That stray Rs 754 is precisely what pays for the 1,183rd share, and that one share is worth about Rs 3,140 by Friday. Discarding it drops the answer to 3.10% and lands you on the wrong option.
Step 3: Close the position. Sell on Friday at Britannia's Sell price of 3,140, and add the residual from this leg (36,85,652−36,85,045=607):
1183×3140=37,14,620⟹Final wealth=37,14,620+607=37,15,227
Step 4: Compute the return.
Return=36,00,00037,15,227−36,00,000×100=36,00,0001,15,227×100=3.2008%≈3.20%
Step 5: Confirm with a shortcut. Ignore the share-counting entirely and just compound the two price ratios, which is what the trade does at heart:
19331979×31153140=1.03201⟹3.20%
Both routes agree to two decimal places, which confirms the answer is robust and not an artefact of rounding.
Final Answer: 3.20 percent